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Slowing growth can't stop the dollar

The Australian dollar was almost three-quarters of a US cent higher after economic growth figures came in broadly as expected.

In late trade, the local unit was buying 104.74 US cents, up from 104.06 cents on Tuesday.

Gross domestic product (GDP) grew by 0.5 per cent in the three months to September 30, down a touch from 0.6 per cent in the June quarter, with the dip caused mainly by falling commodity prices.

Over the year to September 30, the economy grew by 3.1 per cent.

CMC Markets senior trader Tim Waterer said the Australian dollar maintained its levels in the face of falling commodity prices and slower economic growth.

‘‘The Australian dollar has exhibited Teflon-like qualities recently by ascending despite events, which may on the surface have suggested moves to the contrary,’’ he said.

‘‘The GDP reading today caused a mild downward reaction in the Australian dollar but the ground was quickly recovered.

‘‘The growth of 0.5 per cent for the quarter versus 0.6 per cent forecast did not miss the mark by miles, but equally it was nothing to get too excited about, which explains the fairly mild response by the market.’’

Mr Waterer said the focus for the market would be the Australian employment figures for November on Thursday and US employment data on Friday, also for November.